Interest-based loans to establish business : a loan to buy a business

Fatawa Question

Assalamu Alaikum, my question is : is it allowed to take a loan from a bank to buy a business.. That's the only way to start a business here in the united states... If I want to take a loan on a business lets say 900 thousands and I'll have to pay that in 15 years with the interest after the 15 years the total I'll have to pay is lets say 980 thousands. Now the question is if I took this loan and pay it back in the 15 years would that be the same as if someone bought the business for 900 thousands and said to me I'll sell it to you for 980 thousands and you can pay me that in 15 years ? Jazakumu Allah Khair Notes I know bay' Mu’ajjal is not the same as taking a loan from a bank because of the interests but what I'm trying to get if I took the loan for 15 years and I put in my intention that my Niyyah is to pay it back on time so it would be as bay' Mu’ajjal, would it be Halal,,, and it would be Haram when I exceed the 15 years.( that's the only way for the interest to keep counting just if you don't pay it on time.) so if u pay it on time it wouldn't count extra money, would it be Halal ?

Fatwa

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Publication Date

2001-05-27

Main Subjects

Financial and Accounting Sciences
Islamic Studies

Topics

• Islamic jurisprudence
• Loans
• Business
• Usury

No. of Pages

2

Data Type

Fatawa

Language

English

Record ID

BIM-725729

• APA
• MLA
• AMA